Patent Box
Connect qualifying rights. Review the relevant profits.
Patent Box can apply an effective 10% Corporation Tax rate to qualifying profits where a company holds or exclusively licenses qualifying intellectual property and meets the development conditions. An election and detailed calculation are required; owning a patent alone does not establish the benefit.
What merits review
Begin with the qualifying conditions.
These points are a starting framework, not a conclusion on eligibility.
- 01The company is liable to UK Corporation Tax and holds or exclusively licenses qualifying rights.
- 02The company has undertaken qualifying development activity.
- 03Relevant intellectual-property income and profits can be identified.
- 04The election timing and nexus calculation are reviewed.
Coordinated review
A clear route from facts to next steps.
Scope, responsibilities and commercial terms are agreed before work begins.
Step 01
Identify patents, licences, territories and group ownership.
Step 02
Understand the company's development contribution.
Step 03
Map relevant income and costs to the qualifying IP.
Step 04
Coordinate the tax calculation and election considerations.
Useful records
Evidence makes the position reviewable.
The exact documents depend on the relief, transaction and accounting period.
- Patent and licence documentation
- Development records and staff responsibilities
- Product, income and cost records
- Group structure and prior election information